OPEC Production Increase Offset by Africa Disruptions

(Bloomberg) -- OPEC boosted crude production as planned last month, but the increase was tempered by disruptions at long-troubled member nations.
The Organization of Petroleum Exporting Countries raised output by 190,000 barrels a day in January, according to a Bloomberg survey. That fits with an agreement between the group and its allies to revive some of the supplies halted during the pandemic.
Yet the monthly change is barely two-thirds of the scheduled amount, as increases by OPEC’s Persian Gulf exporters were offset by disruptions in Nigeria and Libya.
Output from OPEC’s 13 members averaged 25.67 million barrels a day in January, according to the survey. It’s based on ship-tracking data, information from officials, and estimates from consultants including Rystad Energy AS, JBC Energy GmbH, Energy Aspects Ltd. and Petro-Logistics SA.
OPEC and its partners agreed to collectively restore 500,000 barrels a day in January amid signs that global fuel demand was tentatively recovering from the coronavirus shock. OPEC’s share of the increase amounted to just over 300,000 barrels.
Saudi Arabia, Kuwait, the United Arab Emirates and Algeria revived output in accordance with the agreement, the survey showed.
In Libya, a member exempted from the pact because of previous chronic outages, production fell by 60,000 barrels a day to 1.16 million after a leak forced the closing of a critical pipeline for more than a week. The halt at the link operated by Waha Oil Co. illustrated the toll that inadequate investment and neglect are taking on infrastructure in the conflict-torn nation.
Nigeria also saw output decline, by 50,000 barrels a day to 1.47 million, after Royal Dutch Shell Plc asked to suspend deliveries of Forcados crude because of pipeline leaks. Flows from Exxon Mobil Corp.’s Qua Iboe facility also slipped amid an on-going force majeure that lifted earlier this month. In recent years, the country’s exports have occasionally been hobbled by leaks and sabotage on its pipeline network.
Iraq Steady
Iraq, which had promised to slash production substantially to deliver its share of pledged production cutbacks, kept supplies steady. The country pumped an average of 3.87 million barrels a day, the survey showed.
After the increase in January, the group and its allies have resolved to keep output steady for two months as the resurgent pandemic poses a fresh threat to fuel demand. Saudi Arabia has pledged an extra 1 million-barrel cut of its own over the period to ensure that global markets remain balanced.
Key members of the OPEC+ alliance -- which is led by the Saudis and Russia -- will meet online on Wednesday to assess the outlook, though they aren’t expected to recommend any adjustments to the accord, according to delegates who declined to be identified.
The 23-nation coalition will hold a full ministerial meeting in early March to decide its next steps.
--With assistance from Verity Ratcliffe, Anthony Di Paola, Elisha Bala-Gbogbo, Prejula Prem, John Deane, Brian Wingfield and Salma El Wardany.
© 2021 Bloomberg L.P.
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Iraq Aims to Finalize Exxon Oil Sale by June
- ONGC Employees Abducted
- $280MM ExxonMobil Cuba Lawsuit Can Proceed
- Welltec Signs Significant Aramco Deal
- North Sea Field Gets Life Extension
- API Reveals 2020 Pipeline Safety Award Winners
- Aker BP Awards Contract for Offshore Norway Well
- Kinder Morgan Sees $1B Windfall from Texas Storm
- Pro-Pemex Bill Clears Mexico's Lower House
- Will Aramco Sell Stakes in Upstream Assets?
- USA Selling up to 9MM Barrels from Reserve
- Former Enron Trader Sees Change in Houston Oil Patch
- Iraq Aims to Finalize Exxon Oil Sale by June
- DOE Pledges $162MM to Decarbonize Cars and Trucks
- Offshore Gabon Contract Goes to Maersk Drilling
- Pavilion Energy Imports Carbon Neutral LNG Cargo
- Coast Guard Suspends Gulf of Mexico Search
- ONGC Employees Abducted
- $280MM ExxonMobil Cuba Lawsuit Can Proceed
- Welltec Signs Significant Aramco Deal
- Biden Plan Gives Oil Sector Surprise Boost
- Oil Giants Win Climate Suit
- Largest UK Listed Independent Oil Co Born
- Hess Sells Bakken Stakes
- Biden Plan Gets Mixed Review from Oil Groups
- This Is What Shale Growth Will Hinge On
- Biden Plan Targets Fossil Fuel Subsidies Worth $35B
- Californians May Soon Pay $4 for Gasoline
- OXY CEO Rejects USA Carbon Tax
- GOM Vessel Incident Declared Major Marine Casualty